In Thursday’s trading session, the shares of one of the prominent Indian company specialised in structural projects, including elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways jumped upto 6 percent following the agreement with the National Highways Authority of India (NHAI)
Price action
With a market capitalization of 6,001.36 Crores on Thursday, the shares of Ceigall India limited rose by 6.3 percent making a high of Rs 366 compared to its previous closing price of Rs 344.50.
What happened
Ceigall India limited specialised in structural projects, including elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways.
As per the agreement, Ceigall India Limited has announced that its subsidiary, Ceigall Ludhiana Bathinda Greenfield Highway Private Limited, has successfully executed a Concession Agreement with the National Highways Authority of India (NHAI) on 24th December 2024
The project work is valued at Rs. 981 crores which involves the development of a 6-lane access-controlled highway from Ludhiana to Bathinda as part of the Ludhiana-Ajmer Economic Corridor in Punjab. It will be completed under the Hybrid Annuity Mode (HAM) with a completion and operation period of 24 months. This initiative is part of the Bharatmala Pariyojana Phase-I and aims to enhance infrastructure in the region.
About the company
Ceigall India Ltd is one of the leading premier infrastructure construction companies, recognized for its expertise in executing specialized structural projects.
Ceigall has grown from a small construction firm into a leading EPC (Engineering, Procurement, and Construction) player. The company is known for its work on critical infrastructure projects such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways.
They place a strong emphasis on customer satisfaction, operational efficiency, and corporate social responsibility, ensuring a positive impact on both the economy and the environment.
Orderbook segment
Ceigall India Ltd’s current order book, valued at Rs. 12,153.23 crores, is diversified across various sectors. Roads, highways, and flyovers account for 82.8% of the total order book, amounting to Rs. 10,065.90 crores. Railways and metros contribute 12.6%, which is Rs. 1,532.19 crores. Tunnels represent 2.9% of the order book, totaling Rs. 352.45 crores. Airport runways make up 0.5%, amounting to Rs. 60.77 crores, while bus terminals account for 1.2%, or Rs. 145.84 crores.
Marquee clients
Ceigall India Ltd is proud to have a distinguished list of marquee clients, including prestigious organizations such as the National Highways Authority of India (NHAI), the Ministry of Road Transport and Highways, and the Military Engineer Services. The company also works closely with the Public Works Department in Punjab, IRCON International Limited, and the Bihar State Road Development Corporation Limited
Financials
The company’s revenue rose by 5 percent from Rs 749.57 crore to Rs 786.81 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs 73.91 crores to Rs 67.32 crore during the same period.
Key Financial ratios
Ceigall India Ltd has an impressive Return on Equity (RoE) of 19.85 percent and a Return on Capital Employed (RoCE) of 20.78 percent. Furthermore, the company’s debt-to-equity ratio is 0.59.
Written by Sridhar J
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